[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[krokofilen]

Becker F9-5, under heading “Optional reporting”: “Gov often present a comprehensive annual report. A CAFR is not a GAAP requirement: it is a GFOA designed presentation thats adds an intro section and a statistical section to the beginning and end of a GASB 34 presentation”

I just did this NINJA MCQ: “The statistical section of a government's comprehensive annual financial report is:”

Answer is “is always considered part of required supplementary information”

?!?

The explanation says “State and local governments are required to prepare a statistical section that accompanies the basic financial statements. GASB 2800.101 clearly indicates that the statistical section is supplementary information.”

Is Becker wrong or are these two different things being referred to here?

Big 4 Audit Manager from Europe here to pass the CPA in the U.S. of A in 2014! Niiice!

AUD - 95 / Jul 15 / 130h over 4 weeks
FAR - 86 / Aug 14 / 240h over 4 weeks
(11 week break)

REG - 81 / Nov 14 / 200h over 4 weeks
BEC - 87 / Nov 17 / 30 h over 2.5 days

[jpowell31]

staying positive with this exam is the only way you can get through it, i'll tell you that much!! 🙂

@Anna – I'm back on pensions after work…which reminds me I need to get back to work if i'm going to get studying at a decent hour. I'll take a look at your question then because I'm also confused – I get why the answer is the way it is but without numbers how are we meant to assume the contribution exceeds the pension expense? I mean – it would probably exceed the expense given the first year of operation, benefits have not vested…..etc………but yeah, i'm lost on that point as well.

[jpowell31]

@kroko i think theyre trying to trip you up – they didn't ask if the CAFR was optional/required…i think you should read it as “IF you are reporting the CAFR”, the statistical section is always required in supplementary info

[HopefulCPA0601]

Question: Town, Inc., is preparing its financial statements for the year ended December 31, 20X1. On January 5, 20X2, prior to the issuance of the financial statements, Town redeemed its outstanding bonds and issued new bonds with a lower rate of interest. The reacquisition price was in excess of the carrying amount of the bonds. What is the appropriate reporting requirement?

A. Disclosure only

B. Accrual only

C. Both accrual and disclosure

D. Neither accrual nor disclosure

Answer A is Correct because – Information which becomes known after the balance sheet date, but before the financial statements are issued, should be disclosed to keep the financial statements from being misleading. The gains or losses associated with the redemption and issuance of the bonds would be reported and disclosed in the 20X2 financial statements.

Why wouldn't the loss be accrued?

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[ahugemistake]

Because it wasn't something that was ‘discovered' after the balance sheet that needed an adjustment to the financials, the bonds were sold in the following year, and since it is a (assuming) material transaction it should be disclosed in the prior year report.

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[krokofilen]

HopefulCPA0601 – b/c the event occured after the fiscal year. It was not present as per the balance sheet date.

We're doing FAR on the same day btw.

Big 4 Audit Manager from Europe here to pass the CPA in the U.S. of A in 2014! Niiice!

AUD - 95 / Jul 15 / 130h over 4 weeks
FAR - 86 / Aug 14 / 240h over 4 weeks
(11 week break)

REG - 81 / Nov 14 / 200h over 4 weeks
BEC - 87 / Nov 17 / 30 h over 2.5 days

[krokofilen]

jpowell31, yeah you're right, I see that now. I hate those types of questions, they always get me b/c of the language. (I am not a native English speaker)

Big 4 Audit Manager from Europe here to pass the CPA in the U.S. of A in 2014! Niiice!

AUD - 95 / Jul 15 / 130h over 4 weeks
FAR - 86 / Aug 14 / 240h over 4 weeks
(11 week break)

REG - 81 / Nov 14 / 200h over 4 weeks
BEC - 87 / Nov 17 / 30 h over 2.5 days

[jpowell31]

Because it actually happened in January so should not be accounted for until 20X2, just disclosed in 20X1 as it occurred prior to issuance (not year-end) of FS for 20X1. You're probably overthinking it…after doing more difficult questions that require you to recognize the loss regardless of whether or not it happened….etc. it's easy to get tricked.

I'm on August 14th as well – I will be so upset if my score doesn't get “submitted” prior to midnight! I cannot wait until Sept 9th for my score!!

[ahugemistake]

To you guys who are retaking the exam, what was your general feeling before taking the exam?, and what things caught you off guard the most? and how did you feel when you walked out of the exam?

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[HopefulCPA0601]

Thanks guys!!

@krokofilen & @jpowell31 – is it bad tat im wouldn't be sad at all if i had to wait until 9/9 so I could focus on returns/work and forget about the nasba score release website for a month at least.. ugh im feeling better about this exam but it gives me anxiety regardless

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[jpowell31]

i was over studying and overwhelmed at work when i sat FAR last month. I lose AUD end of August so wanted to give myself at least two shots at it but i knew i wasn't prepared and quite honestly after putting in more time this time around am surprised i did as well as i did and hope i don't get some monster exam as my last one did seem quite reasonable. i'm glad i took it as i saw more of certain areas i didn't think i'd see so i know i may not be able to get by if i skip them.

i wouldn't care if i had to wait if i know i pass @hopeful! i may lose AUD so would like to know if i need to start studynig for both FAR and AUD sooner rather than later and enjoy the rest of my summer 🙁

[Anonymous]

At December 31, year 1, Gasp Co.'s allowance for uncollectible accounts had a credit balance of

$30,000. During year 2, Gasp wrote off uncollectible accounts of $45,000. At December 31, year 2, an

aging of the accounts receivable indicated that $50,000 of the December 31, year 2, receivables may be

uncollectible. What amount of allowance for uncollectible accounts should Gasp report in its December

31, year 2, balance sheet?

A. $20,000

B. $25,000

C. $35,000

D. $50,000

The correct answer is D. Why do we not take any of the other amounts into account?

[HopefulCPA0601]

@jpowell31 makes sense.. good luck!! We are going to pass, I have a good feeling.

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[Anonymous]

CPA2014Dream,

It's only asking about the ending balance

[ahugemistake]

Can someone share that site that is frequently posted here to practice JEs?

FAR - 78*
AUD - 66, 79
REG - 73, 76
BEC - 79

[Author]

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